According to the BEA, in the second quarter of 2012 state and local government spending on goods and services changed by -1.4 percent. Using the expenditure approach, this change leads to
A) a decrease in government expenditure on goods and services.
B) no change in GDP because only federal government expenditures are included in GDP.
C) a decrease in gross private domestic investment.
D) no change in GDP because state and local government expenditure is always canceled out by federal government expenditure.
A
Economics
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A "flat tax" on personal income, in which the same tax rate is applied to every dollar of income earned by each taxpayer, is an example of
A) a regressive tax. B) a proportional tax. C) a progressive tax. D) a value-added tax.
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One thousand dollars given to you a year from now is worth ________ to you today if the relevant discount rate is 10%.
A. $900 B. $1,000 C. $1,100 D. $909
Economics